Standard
Industries Ltd is a Mafatlal group company. Company was engages in textile and
chemical segment. Manufacturing activity is closed and now, it is in trading
activity at small level.
As
on 31.03.2016 equity capital of the company is Rs.32.16 crores and Reserves
Rs.59.26 crores. It is a debt free company.
Promoters
are well known and reliable. Despite company is showing loss due to
administrative expenses, it is paying continuous dividend every year from the
reserves.
The Company has leasehold land of an area of 92.25 acres at Thane-Belapur
Road, Navi Mumbai, (Near Reliance Industries Headquarter) for a term of 100
years computed from 1.8.1965. In 2008, the Company had transferred and assigned
to LOMA IT Park Developers Private Limited (LOMA), Singapore, an area of 30
acres for a consideration of Rs.230 crores. From this proceeds, the company has
settled all loans and VRS expenses to the employees. Old plant and machinery
already sold out.
Trigger
point:
Now on 1st September 2016, the company has entered
into a Memorandum of Understanding with Feat Properties Private Limited (K
Raheja Group Company) to transfer and assign all its leasehold rights of
remaining 62.25 acres of leasehold property for a consideration of Rs.355
crores.
K Raheja group is the country’s second largest developer of
Business Park. It is developing 7 million square foot IT Park near the same
location named GIGAPLEX. Swiss Bank UBS has taken lease of 4 lacs square feet
in this project. Another global company Accenture is already occupying 3 lacs square
feet in same IT Park. Due to low rental cost than Bengaluru, Pune and Gurgaon
demand from IT companies for lease is growing on this location.
Earlier MIDC has approved for transfer of 30 acre leasehold land, it is
expected that for remaining 62.25 acres they will grant permission soon. After approval
from MIDC, proceeds of Rs.355 crores will move in Standard Industries books
from K Raheja Group Company.
The company may reward shareholders an onetime decent dividend and
remaining amount may be used for investments for give good returns like
Piralmal group has done. It is also heard that company will buy back shares at
a decent price.
After news of sell 30 acres land in 2007 share price of the company had
touched Rs.110/-. At present it is available at Rs.27/- only at a dirt cheap price
with limited downside risk.
Disclaimer: This Blog, its owner, creator & contributor is neither a research analyst nor an Investment Adviser and this re-presentation is based on information available on various websites on internet. He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information.
Well. Seems like you have got an ear to the ground when it comes to such news. But as some one said, Time is the opportunity cost of a DCF model, well may be of sure cash coming in future like here too
ReplyDeleteMay be, you need to call the CS of this SIL and ask them id they have any plans to pay out one time dividend. If thats not the case then call the CEO and MD too to clarify this. I tried a few calls to known sources obtained from Zauba on-line, but as I see it, they would not appreciate the effort.
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